Have you ever been chatting with a group of friends and the topic of mortgages comes up… and everyone just assumes that every person in the world has a mortgage?
That you’re either still renting or you have a gigantic home loan.
If you question whether or not being loaded up with $300,000, $400,000 or even for some $600,000+ worth of debt is good or not, you’ll almost instantly hear something along the lines of “Oh, it’s good debt, everybody has a mortgage so it’s OK“. But social acceptance of something doesn’t change reality.
Being in debt to the bank is a huge pain in the ass. It can make you feel insecure if your minimum repayments are really high and you constantly have trouble making them each month. You can even be meeting the repayments but still feel annoyed because, well, paying interest is not fun at all and it often feels like you’re just banging your head against the wall. The amount owed never seems to budge!
Do I really have to keep forking out all this money for 30 years????
Now although everyone says they’d love to have a billion dollars the truth is that most of us have quite modest dreams and often just want to feel safe and secure. To know your kids are secure (financially) and to likely have the financial freedom to spend more time with them. It’s not a big ask. You don’t need to be a billionaire for those types of dreams to come true. They’re very sensible and realistic dreams that I think everyone can achieve if they focus on the right things and work consistently well in life.
I’ve been part of those discussions that assume everyone has lots of mortgage debt and it’s fantastic to know that we’re not actually part of that “everyone has a mortgage” crowd. All of the money we earn comes to us and stays with us. We feel very secure and if something does go wrong in the future I know it will help soften the blow immensely.
Just imagine what a mortgage free life for you personally would mean. Solid financial security, freedom over your earnings again, reduced stress over money issues, more travel…
So have other people in Australia reached this state? If so, how many? And can you do it too?
Not EVERYONE Has A Mortgage!
Now obviously that’s a pretty “durr” statement when you think about it. Of course some people don’t have mortgages however I always assumed that “everyone” meant basically everyone who isn’t renting. You were either renting or you had a mortgage debt, maybe with a small percentage of people to the side like us that had paid it off.
The reality is though that quite a lot of people don’t have a mortgage! The data above was taken from the ABS and although it’s from 2006, it likely hasn’t changed too much since then from what I can tell. As you can see there is roughly 29% who rent while roughly 70% own their own home. The interesting thing though is that over HALF of those “home owners” DO actually fully own their house out right.
They’re not in debt, they’re not struggling or anything. They have a fully paid off house and this is roughly 1/3rd of Australia’s population too! In fact, looking at the pure numbers there’s actually MORE of a chance that someone you know has paid off their mortgage (35% vs 34%).
It’s Very Normal NOT To Have A Mortgage
When looking into these details I found it pretty amazing that so many people don’t have a mortgage over their head. It’s easy to get caught up with your own life and exclude everything else around you. You know your life and the way it runs, so you project that “life” onto others and just assume that that’s how THEIR life must be too. You’ve got a $300,000 mortgage… therefor that couple over there must have one too.
But deep below the surface things are completely different for everyone. Sure, you might have a $400,000 mortgage… but more than half of all people who live in their own home own it free and clear. Sure, I can imagine that most of these full owners are likely older than the ones who still have a mortgage but it’s still a pretty interesting reality to see.
So how can it be “normal” to have a mortgage when most people DON’T actually have one?
The answer is it’s not.
“Mortgage” is actually French for “death pledge“. Maybe back in 1000 BC it was “normal” for everyone to be a slave until they died but today, in our modern world being a wage slave to a business just so you can pay back your death pledge is no longer how everyone does it. Even here in Australia’s capital cities like Melbourne and Sydney where house prices are FAR above the average wage you still should not think it “normal” to be slaving away for the vast majority of your adult life.
There is a better way to do it. There is a quicker way to do it. The Mutilate The Mortgage way. A proven strategy that can help you get control of your earnings again. You can see it below here (click the image) and its well worth your time and effort.
So now you know. It’s not normal to have a mortgage… so go get rid of yours!
The benefits include: 1) How to pay off your mortgage faster than 99% of people with one hour a month of work 2) How to get rid of your debt and have the freedom to spend money on the things you love, guilt free 3) Clear outline of how to setup your expenses, mortgage and general finance 4) How offset accounts work and how to get the same result without being gouged by the big banks 5) How to cut through the crap and focus on the things that truly matter when taking down a mortgage 6) How to adjust the strategy so it works for you, even if you have kids, even if you only have one income 7) How to do all of these things and maintain a normal social life (and never be cheap).